FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.26431

Kijun-Sen- 1.27304

The pair regained 50 pips after the Bank of Canada monetary policy. It has kept its rates unchanged at 0.25% line with analyst expectations. BOC said that recent economic indicators suggest the economy had considerable momentum going to Q4 and CPI to remain elevated in the first half of 2022. It hits a high of 1.26865 at the time of writing and is currently trading around 1.26796. US dollar index has pared some of the loss made yesterday. Any breach above 96.65 confirms intraday bullishness. The intraday trend remains bearish as long as resistance 1.2750 holds.

Crude oil price-

WTI crude oil has shown a relief rally due to risk-on sentiment. Investors are confident that Omicron can be managed with vaccines.  US EIA has informed that US crude inventories fell by 0.20M compared to a forecast of -1.5M.

 Intraday Trend –Bearish

The near-term resistance is around 1.2750, a breach above targets 1.2800/1.2850/1.2900.On the lower side, immediate support stands around 1.2650; violation below will take the pair down to the next level 1.2600/1.2560.

It is good to sell on rallies around 1.2748-50with SL around 1.2800 for a TP of 1.26000.